Okta Earnings Beat on AI Demand

Okta, Inc. (Nasdaq: OKTA) reported $763 million in revenue for the quarter ended April 30, 2026, beating expectations on May 28, 2026. The company raised its fiscal 2027 revenue and margin outlook, citing surging demand from AI agents as a key driver of identity management growth.

Quarterly Results and Guidance

Okta said in a press release on May 28, 2026, that its quarterly revenue exceeded the top end of prior guidance and consensus estimates. Non-GAAP earnings per share also surpassed analyst expectations. Non-GAAP operating income topped the high end of guidance, and the operating margin expanded compared with the year-ago quarter. The company attributed margin gains to higher revenue and disciplined cost management as part of its shift toward profitable growth.

On a GAAP basis, Okta narrowed its operating loss to near break-even and reported a smaller net loss than the prior year, with improved GAAP operating margin. Management described this as progress toward sustainable profitability.

Subscription revenue, which accounted for the vast majority of sales, grew double digits year over year. Professional services and other revenue remained a low-single-digit share. Total remaining performance obligations (RPO) rose double digits, and current RPO (cRPO) growth exceeded the company’s prior guidance of about 10%, supporting stronger contracted revenue visibility. These metrics underpinned the company’s more confident full-year outlook.

As of fiscal 2026’s fourth quarter, Okta had 5,100 customers with annual contract values above $100,000, a 6% increase year over year, reflecting enterprise adoption into larger accounts.

The company reported cash, cash equivalents, and short-term investments in the multi-billion-dollar range. Operating cash flow and free cash flow were positive, with free-cash-flow margin improving alongside profitability. Management said this liquidity supports continued investment in the platform and AI-related capabilities while maintaining operating discipline.

Okta raised its full-year fiscal 2027 revenue and non-GAAP operating margin guidance and lifted its full-year non-GAAP EPS outlook. For the second quarter, it forecast mid-to-high single-digit percentage revenue growth year over year and continued non-GAAP margin expansion, though Q2 margin is expected to remain below the full-year rate due to incremental investments. The upgraded outlook assumes sustained demand across workforce and customer identity and nascent AI-agent opportunities, with no major macroeconomic deterioration.

The release disclosed no new regulatory approvals, enforcement actions, or merger-and-acquisition conditions.

AI Agents and Product Positioning

CEO Todd McKinnon said, “AI agents are rapidly becoming a new workforce inside every organization, creating a wave of identities that must be secured and governed alongside human users.” The company views this as a growing market for identity management of non-human agents.

Okta positioned itself as an independent, neutral identity platform supporting both human and non-human identities across clouds and SaaS applications. Management argued that its platform breadth and recurring subscription model position the company to capture additional identity workloads as customers deploy autonomous software agents.

The combination of durable subscription growth, stronger RPO, margin expansion, and raised guidance—linked to the AI-agent thesis—creates a multi-quarter growth-plus-profitability narrative likely to shape investor focus on OKTA stock.